Will AMC squeeze This Year?
The Fool thinks you should sell your stock, but retail investors aren’t budging.
Mainstream media who serve hedge funds in a conflict of interest have been egging retail investors to not buy the stock all of 2021.
If you listened to The Fool who told you not to buy AMC when its share price was low, then you would have missed out on a trade that went as high as 3000% in gains!
While the runup to $72 per share might have caused AMC’s short interest to drop to 14% from 20%, AMC’s short interest has now gone up to 22%.
Ladies and gentlemen, AMC stock has plenty of room for growth in 2023.
Welcome to Franknez.com – the blog that provides retail investors market news with integrity. Today we’re discussing AMC’s short interest data to determine whether it will squeeze in 2023.
Let’s dive right into it!
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Mainstream media wants retail to lose
It’s no secret the financial platforms who have been attacking AMC stock are tied together.
Wall Street Journal’s parent company is News Corp., who also owns Barrons, MarketWatch, and DOW Jones Newswire.
Well, there’s a relationship between Citadel Securities’ CEO Ken Griffin and News Corp (he owns stock).
This creates conflict of interest because of the influence these people in power have who are shorting AMC stock.
Citadel Securities is one of the top 10 financial institutions shorting AMC stock.
So, let’s look at the data that shows whether or not AMC will squeeze in 2023.
Read: 5 Big Signs Pointing to An AMC Short Squeeze
AMC Short Interest Data (2023)
AMC’s short interest is currently at 24.26%.
The short interest tells us the percentage of a stocks float that is being shorted (shares have been borrowed and not yet closed).
Because AMC is heavily shorted at 24%, this is a short squeeze play in 2023.
A 24% short interest is equivalent to approximately 195 million shares on loan (shares that have been borrowed and have not yet been closed).
When AMC’s short interest dropped from 22% to 14% (6 points), the share price rose to $72 per share.
New short positions have brought AMC’s short interest up to 24% again meaning there are many shorts that have yet to be squeezed from their positions.
AMC’s short interest for 2023 is updated here daily for free, via Ortex.
Whether AMC’s stock price is up or down, the short interest tells us a large portion of AMC’s float continues to be shorted.
The short interest is the main recipe for a short squeeze.
Related: Are Institutions Preparing to Close Short Positions in AMC?
Will AMC Squeeze in 2023?
AMC has a high enough short interest to squeeze shorts from their positions in 2023.
Sitting at 24% short interest, it’s more than enough to get the price up well into the high hundreds of dollars per share.
Whether regulators will investigate naked shares, FTDs, and other forms of counterfeit shares for hedge funds to cover is another topic.
AMC will need momentum if it’s to see another massive runup in share price.
Furthermore, hedge funds will lead their customers into losses for the second year in a row if retail investors continue to buy and hold the stock in 2023.
AMC Entertainment stock has plenty of room for growth and mainstream media doesn’t want you to know it.
Related: How Big Could an AMC Short Squeeze Potential Surge?
Who is AMC stock for?
AMC stock is for the retail investors who are willing to take a little risk to multiply their investment through a short squeeze play.
A short squeeze play is a long commitment with incredible upside.
If you’re lucky enough to get involved in the ape community you’ll find yourself fighting for a fair and transparent market, where your voice means everything.
Also Read: AMC’s Rising Borrow Fee Rate Spells Trouble for Short Sellers
Reasons why AMC wont squeeze in 2023..
I’ve always been transparent with the community.
There are many of you who got in when I first began publishing the data early last year and are sitting on unrealized gains today.
And although AMC could have squeezed during various occasions last year, there are still things that can hinder AMC from squeezing this year.
Here’s a list of things that will refrain AMC from squeezing shorts from their positions:
- Retail investors start selling AMC stock
- Retail investors stop buying AMC stock
- New buyers aren’t introduced to the stock or short interest data
- Number of day-traders increase
- Regulators don’t enforce margin calls / protect retail from market manipulation
The AMC community has not had a problem holding or buying the stock.
One of the biggest problems the community faces today is regulators not protecting retail investors against the predatorial strategies from hedge funds.
The community has always been a beacon for change.
Apes will need to voice market concerns to elevate awareness.
Related: These Two Signs Will Tell You a Short Squeeze is Over
Latest Market Regulation/Proposals
AMC stock had multiple chances to squeeze in 2021, however, hedge funds always found a loophole that would prevent them from reporting information, or trading stock in the lit exchange.
Market manipulation continues to be a threat to every retail investor in the market.
AMC Entertainment was on the brink of extinction, it was about to go bankrupt.
Hedge funds took this opportunity to overleverage their short positions in the stock, betting it would close forever.
Once retail investors got in and saved the company, the community uncovered a number of market manipulation tactics that allowed hedge funds to prevent the stock’s share price from soaring.
The fight for a fair market continues in 2023.
For the ape community, this is more than just a short squeeze play.
It’s about freedom.
Read: Strategist Says Mother of All Short Squeezes is Here
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Related: Is an AMC Squeeze Probable in 2023?
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– Frank Nez
I can’t believe we are letting AA crush our investment in AMC with an illegal vote that was set up by him selling APE shares to get a majority vote. At the same time not providing voting applications to all owners of the stock. This is like a nightmare and we are sitting here ready to be destroyed financially playing into the hands of the crooks that AA is protecting. We are stuck down 400% hoping to get our money back to save AMC and AA is crushing us. We need to sue or loose all our life savings WTF OMG.
So how can we buy more if there is only a few percent left of the float? How will that create a squeeze at this point? I’ve been pondering about that because its stated that you have to keep buying, but if you can buy is only 10% of the float the stock price won’t even budge because volume will not be a huge lift. Can someone explain? My thought is people have to sell so people can buy by the huge volumes again.
I enjoy your articles and find them very helpful . There is a great deal of chatter about the T+90 rule that will supposedly force the squeeze . Do you have any information about this?
About 5.5%, and the short interest is nearly 20%.
AMC has 90%+ retail ownership. What is retail ownership in cinemark?
@Will 100%
If AMC is a short squeeze candidate with potential to reach $100 because it has a short interest of 21%, then the same must be true of Cinemark, which is priced around the same value per share and also has a short interest of about 21%.
Here’s the thing, though: while neither company can reasonably claim a valuation of $100 on fundamentals, Cinemark is a traditionally profitable company with a stable outlook that just posted profits in Q4. On fundamentals, it can justify a valuation in the high $20s, nearly double its current $16.50 price. AMC, in contrast, can’t justify on fundamentals even the share price it has right now.
That being the case, if a 21% short interest is sufficient to create conditions for a squeeze, and if you believe that the media and various funds are determined to badmouth AMC, wouldn’t it make sense to start buying CNK shares and attempt to engineer a squeeze there instead?
A lot of apes see AMC and Cinemark as competitors, which is true in only the loosest sense. Domestically, most people live in smaller markets where there is only one Big Three cinema. Even where there are choices, people have their favorites based on location or which club program they prefer (because their programs are totally different). ALL of the cinemas are actually in competition with something else, which is the media and analysts’ fascination with streaming. Whatever makes theaters prosper is good for all of the cinema brands, because what they all need is a greater commitment to the theatrical release window.
If you go and buy Cinemark shares, and Cinemark surges up to $60 or $70 on a short squeeze, you make money that you can reinvest in AMC or whatever if you want to do so. Cinemark, meanwhile, can issue new shares — it’s got a lot of room to do that, while AMC doesn’t — and pay down its debt further, increasing its profitability. That will help boost confidence in the cinema sector as a whole, which may boost AMC as well. But even if it doesn’t, please understand that the day that competition among the chains becomes a big deal again will mean we’ve already won. What we need to do is to promote the cinemas in general.
So, stay long AMC, by all means. If you’re really trying to stick it to the media and the hedge funds, understand that the odds of a squeeze for Cinemark are probably higher than for AMC all things being equal, because Cinemark’s recent performance is stronger and it’s more broadly accepted to be a recovery story. Get into buying CNK and we could see the same kind of surge as we saw in AMC last year, but with a lot less potential for media coverage to go negative.
Something to think about, anyway. 😉
I’ve been seeing such negative articles from Motley Fool, and several writers at Investor Place. This is the first one that is real about why a squeeze could be hindered.
Your reasoning that AMC needs retail to keep buying in order to propel a squeeze is ludicrous at this point. We already own 90% of the float according to AA. Buying does not make a difference at this point its useless. The SEC needs to get off thier ASS and do something. GG is a puppet for the elite. Check out the interview he had with Jon Stewart on Apple TV. You can tell that GG is full of shit and really has no power or intention on doing anything.
https://franknez.com/the-apes-have-exposed-market-corruption-but-whats-being-done/
I’ve been dollar cost averaging into my $AMC positions since 1/18/21. I’ll continue buying and holding even more since it’s near my cost basis average.
Frank what can we do as Apes to get the SEC to take action???
Hi Gary, the SEC and DOJ are currently taking Morgan Stanley and multiple hedge funds to court: https://franknez.com/regulators-are-taking-morgan-stanley-and-hedge-funds-to-court/
Apes must continue to raise awareness on social platforms while tagging regulators. Consistent demand will create change. Thanks for your comment brother.
Please mention DRS..
That’ll be a separate post, thanks for your comment.
.. One of the biggest problems the community faces today is regulators not protecting retail investors against the predatorial strategies from hedge funds…👏👏 Yes!! And #5 is our biggest threat ~ hedge corruptions and what’s worse is that there are no regulations to stop their ongoing manipulations! Thank you for spreading the awareness. I wish more apes are passionate about it, not just about the moass. Apes, demand JUSTICE!!
That’s right Sophie, the retail community demands JUSTICE
Thanks Sir Frank. Walking by Faith and Waiting upon the Lord. The Promised Land is on the horizon.
Isaiah 40:31
Yes 🙏